A consortium of energy industry companies led by SGP BioEnergy has partnered with the Panamanian government to launch what will become the world’s largest biofuel production and distribution hub. Dubbed the Golden City Biorefinery, the facility is expected to begin production in 2024 at an output of 60,000 barrels per day initially, expanding to a full daily capacity of 180,000 barrels of sustainable fuels, including sustainable aviation fuel—derived from purpose-grown plant oils and waste fats—by the completion of the third phase in 2027.
Engineering is already underway on the $7 billion facility, which will use technology licensed from Danish company Topsoe. These proven technologies have already been deployed in more than a dozen renewable fuel production facilities and have a total global production capacity of more than 650,000 barrels a day. Construction is expected to begin by the end of the year and plans call for it to repurpose existing facilities that are currently processing and storing 70 percent of Panama’s bunker fuel oil.
“Our country welcomes this biofuels production and logistics facility that will help Latin America and the world in the energy transition and contribute to climate change innovation,” said Panama President Laurentino Cortizo. “We are very excited about the 1,000 jobs this investment will generate for the people of Colon and Panama. In addition, it has the potential to stimulate Panama’s agricultural sector by producing bioenergy feedstocks locally.”